Jeff wants to start his own business and he's eager to make it successful. He remembers his sociology professor talking about socialization theory, human capital, and allocation theory. Armed with this knowledge, what should be Jeff's strategy in building up his business?

Question

Quizplus · Accepted Answer

Jeff should follow human capital theory, which states that investing in human capital (i.e. education and training) leads to increased productivity and success for the business. Therefore, hiring mostly college graduates who have the needed skills and higher productivity levels could make Jeff's business successful in the long run. It's not a wise decision to avoid hiring college graduates as they are often valuable assets to a business. It's also not a good idea to hire more workers than necessary as it could lead to unnecessary expenditures. Lastly, outsourcing as many positions as possible could also lead to quality and control issues.

Jeff Wants to Start His Own Business and He's Eager